jack basso american association of state highway and transportation officials business meeting of...
TRANSCRIPT
Jack BassoAmerican Association of State Highway and Transportation Officials
Business Meeting of theAASHTO Standing Committee on Finance and Administration
August 10, 2011
FEDERAL SURFACE TRANSPORTAITONAUTHORIZATION AND FUNDING
Discussion Topics• America at a crossroads in transportation• The current climate
o The Federal budget and revenue is a driving force in future decisions on transportation funding
o The Congress of the U.S. undergone a sea changeo The financial backbone of the Federal highway and transit programs
is in critical condition
• Key questions affecting funding:• What is the Federal government’s role going to be in the
future?• How will the Federal government best generate the required
revenue for investment?
The Current Climate:
Discussing the Issues
The Current Climate• The latest news:• Currently the Federal Highway and Transit programs
are operating on a short-term extension• The Administration has outlined a long-term
reauthorization proposal with the budget release in February 2011
• However, they have no revenue options identified • The Highway Trust Fund has required Federal
General Fund supplements• There is no support for increasing user fees (gas tax)
Where We Are NowCongress acted to keep the Trust Fund Solvent
o September 2008: $8.017 billion General Fund transfer to the Highway Trust Fund
o August 2009: $7 billion General Fund transfer to the Highway Trust Fund
o September 30, 2009: SAFETEA-LU expiredo March 1, 2010: Highway Trust Fund shutdown for two dayso March 18, 2010: $19.5 billion in foregone interest
payments credited to the Highway Trust Fundo December 31, 2010: Current SAFETEA-LU extension expireso Fiscal Year 2012: Highway Trust Fund projected to become
insolvent
Actual Estimated
$39.4
$35.0
33
38
43
48
53
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
($ b
illio
ns)
Total Outlays Total Receipts
Note: Excludes $8.017 billion transfer from General Fund to Highway Account of HTF in September 2008; $7 billion transfer fro m General Fund to Highway Account of HTF in August 2009; $19.5 billion transfer from General Fund to Highway and Mass Transit Accounts of HTF in March 2010.
Highway Trust Fund: Receipts and Outlays Discrepancy
$39.7 $40.1 $40.1
$27.1 $27.4 $27.8 $29.7
$32.2 $32.9
$2.3 $2.4 $2.1 $2.1 $2.1 $2.1 $2.1 $2.2 $2.2
$10.4$11.9 $11.9
$6.3 $6.3 $6.4 $6.5 $6.6 $6.8
0
5
10
15
20
25
30
35
40
45
2009 2010 2011 2012 2013 2014 2015 2016 2017
($ b
illio
ns)
Estimation of Federal Highway and Transit Obligations Through 2017 Based on Current Trust Fund Revenues
(Maintaining Current Services Through FY 2011)
Federal-aid Highway NHTSA/FMCSA/Other Highway Transit (No GF Assumed After 2011)
2,880
2,900
2,920
2,940
2,960
2,980
3,000
3,020
3,040
3,060
Billi
ons o
f Mile
sVehicle Miles Traveled - May 2004 to May 2011
(Moving 12 Month Total)
Future Revenue Collection
• The current U.S system relies on fuel taxes• We have seen a marked decline in revenues• Two National Commissions have called for
short and long-term solutions• VMT collection systems have come to the
forefront of options to consider
Legislative Principles
• Maintain the current federal and state shares for highway and transit capital programs.
• Eliminate or drastically limit earmarking in federal transportation programs.
• Develop policies that support maximum flexibility to allow for use of both conventional and innovative funding and financing tools.
Summary Considerations
• We are at a crossroad• Congress and the Administration face difficult
choices• State and local governments will be affected by
funding choices• The nation will either benefit from our actions, or
be changed in negative ways• The future is really now
